BT, Sky, TalkTalk, Virgin and Vodafone to hike broadband and mobile charges. Will you pay? | Personal Finance | Finance

Broadband and mobile providers are set to implement annual prices hikes of up to a staggering 17.4 percent from April.

This is well above the inflation rate, which was 10.1 percent in January, piling yet more pressure on cash-strapped households. The increases will even apply to customers who are in the middle of a contract.

BT, EE and Plusnet will increase their charges by 14.4 percent. 

O2 will hike by either 13.4 percent or 17.3 percent.

Three broadband and mobile users will pay up to 14.4 per cent more. Shell’s broadband and landline charges jump 13.5 percent.

Most Sky broadband and TV customers face an increase of 8.1 percent.

Virgin mobile users face a 17.3 percent hike, while Vodafone will increase charges by up to 14.4 percent.

How much extra you pay will vary on factors such as what plan you are on and crucially, when you signed your contract. So check with your supplier.

More than a third of broadband users don’t even know what they’re going to pay and nearly half say they cannot afford any kind of increase, according to research from Zen Internet.

Consumers are partly to blame as fewer than one in six read the small print of their broadband contract but Zen chief executive Paul Stobart said: “Providers must be more transparent about mid-contract price rises, especially at a time when everyone is already struggling with household bills.”

Broadband and mobile phones are no longer a luxury but an essential of everyday life, but it’s vital you keep the cost to an absolute minimum.

Switching broadband supplier may seem bothersome but it is worth the effort, CompareTheMarket’s research suggests.

One in three cut costs by switching with the average saving around £188, the site’s digital expert Liam Walker said. 

Keep your eyes peeled for exclusive deals, for example, switchers using CompareTheMarket can get Sky Superfast broadband for £25 per month, plus a £100 gift card.

Switching can be tricky as most broadband providers penalise customers who move elsewhere mid-contract, according to comparison site Uswitch, which has been campaigning for a ban on the practice.

However, seven million Sky and Virgin Media broadband customers who are in the middle of their contract can escape April’s price hikes, if they act fast.

Sky and Virgin give them 30 days to switch supplier penalty free after receiving their price rise notification. Other suppliers do not offer this option.

If signing a new deal this month, check whether you will face a near-instant rate hike in April. Vodafone, TalkTalk, Virgin and Shell have confirmed that customers signing up in March will not face a rate hike in April, although they will in 2024.

Some 11million broadband customers are out of contract and therefore free to switch to avoid April’s price hikes, said Uswitch telecoms expert Ernest Doku. “Explore your options by comparing your broadband price, data and speed with what’s out there.” 

Some smaller or local providers, including Hyperoptic, Cuckoo and Zen, pledge not to increase prices mid-contract, so check what services are available in your area using Ofcom’s broadband and mobile checker, or a comparison site.

Doku said even if your provider charges a penalty for switching, it may be worth paying if you save money over the term of your new contract.

READ MORE: Britons face £2,500 a year in extra costs from April

Those on low incomes and state benefits should check they are eligible for broadband and phone social tariffs, Doku added. “EE, Virgin and Vodafone offer connectivity from £12 a month with no set-up fees or mid-contract price increases.”

Mobile charges are also rising with millions starting to receive letters, texts or emails confirming mid-contract price increases.

Watch out for get-rounds, for example, Tesco Mobile customers whose contract ended before February 1 can avoid April’s price hikes by upgrading to any Tesco Mobile plan before 27 March, otherwise a Clubcard Price plan on or after March 27, Doku said.

When comparing mobile deals, check your monthly usage as many pay for more mobile data than they actually use. “If you regularly have data left over at the end of the month, consider reducing it in your new plan.”

Check how much it would cost to leave your current contract by texting INFO to 85075. You will receive a message confirming if you have to pay exit fees to leave your provider.

If out of contract, switching to a SIM-only mobile could save up to £321 a year, Doku said.

If you do find a better broadband or mobile deal, tell your existing provider before switching, said Sarah Coles, senior financial analyst at Hargreaves Lansdown. “Say you’re thinking of leaving, then ask them to match or beat their rival’s deal. Haggling often works.”